Rolls Royce booked by CBI in a corruption case

Rolls Royce booked by CBI in a corruption case


According to a media report, the Central Bureau of Investigation (CBI) has booked Rolls Royce plc in a corruption case. It is reported that the power system maker paid Rs. 77 crore to an agent to get contracts from public sector companies like HAL, ONGC and GAIL in 2007-2011.

Based on a complaint from the Defence Ministry, a 5-year enquiry was undertaken. It is alleged that Rolls Royce used Ashok Patni as a commercial advisor in over 100 supply orders for HAL during 2007-2011. The contract with HAL had specifically mentioned that no agent should be appointed and no commission be paid to such an agent. In case of ONGC and GAIL, it was mandatory to mention the name of the agent at the time of bidding – a condition which was violated by the company.

It is reported that Rolls Royce did business of over Rs. 4,700 crore with HAL between 2000 and 2013. Patni reportedly received Rs. 18.32 crore in 2007-2011 for HAL deals, Rs. 29.81 crore in 2007-2011 for ONGC contracts as well GBP 1 million in 2007-2010 for GAIL purchase orders. Reports also allege that the company paid Rs. 28.29 crore during 2007-2010 to two companies owned by Patni, which was not declared to GAIL.

The CBI has booked London-based Rolls Royce Plc, its Indian subsidiary Rolls Royce India Pvt. Ltd., Patni and his companies, Mumbai-based Turbotech Energy Services International Pvt. Ltd. and unnamed officials of HAL, ONCG and GAIL for criminal conspiracy and bribery.

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